Is BLB overvalued or undervalued?

As of 8 August 2025, the valuation grade for BLB has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued, supported by a PE ratio of 13.26, an EV to EBIT of 9.56, and an EV to Sales ratio of 0.24. These ratios suggest that BLB is trading at a lower valuation compared to its peers.
In comparison, Life Insurance has a PE ratio of 11.83 and an EV to EBITDA of 9.24, while Bajaj Finance is considered very expensive with a PE ratio of 31.31. The significant disparity in these ratios highlights BLB's attractive valuation within the Non-Banking Financial Company sector. Additionally, while BLB's stock has underperformed the Sensex over the longer term, it has shown resilience with a 5-year return of 307.56%, significantly outperforming the Sensex's 109.93% in the same period.